3 Human Resources Models Every HR Professional Should Know

Human resource strategy is a map that guides us towards achieving organisation objectives by installing a system that matches the organisation's needs with its people's behaviour and action. It is making plans for the management and growth of all of its human capital.

Achieving goals

Consider this: an organisation has specific long-term goals it wants to achieve to grow. As a result, it constructs its HR strategy by combining three elements:

1. Corporate Strategy refers to how a business adds value. A corporate strategy is a mix of the company's goals and the plan for achieving them.

2. Detailed Objectives are the objectives that have been allocated to specific people who are responsible for accomplishing them.

3. Implementation Schedule is created through tasks, actions, and projects.

In a nutshell, 

Corporate Strategy + Specific Objective + Implementation schedule = Basic HR Strategy

The usage of business analytics tools and processes is required while developing an HR strategy. The following are some of the most commonly utilised techniques:

SWOT Analysis

SWOT is a tool used to strengthen the organisation from the inside out. We can survey the organisation for its pain points using a Strengths, Weaknesses, Opportunities, and Threats evaluation. You can use SWOT to examine internal weaknesses, strengths, external threats, and opportunities that have yet to be realised.

The SWOT analysis model.

Understand the organisation's mission statement and goals. Consider how your organisation's strengths can minimise external threats, how the strengths and weaknesses will affect the outcome if the organisation pursues an opportunity, and so on. Examine how one influences the other and vice versa.

VRIO Framework

VRIO examines a company's operations from the inside out. It's a tool for evaluating a company's resources and competitive edge.

The VRIO Framework. Source: The Power MBA

A company's resource is measured by their value. 

• Value measures an organisation's resources. One way to calculate a resource's value is through the Net Present Value.

• Rareness refers to how unique or limited the resources is.

• Imitability is about how difficult it is to duplicate the help.

• Organisation: is the organisation capable of supporting the resource and putting it to good use?

PESTLE Analysis

This method is utilised to analyse the macro-environmental aspects that influence an organisation's performance. 

Throughout the years, many firms have expanded this framework to include more elements such as Demographic, Intercultural, Ecological and Ethical, which resulted in variations like DESTEP, STEEPLED, and SLEPIT.

The PESTLE analysis. Source: MyChartGuide

• Political: Gain an understanding of how the government affects a specific industry, including legislation, rules, rights, data protection, and worldwide changes.

• Economic: Unemployment rates, inflation and interest rates, economic growth, and other economic factors that might affect a company's performance.

• Social: Keeps track of changes in the population in which the organisation operates on a social level. Changes in values, customs, demographics, overall health, etc.

• Technological: Technological advancements that positively or negatively impact a company's operations. Market awareness of technology, R&D, and developments, for example.

• Legal: Keeping up to speed on legislation that affects your business's operations. For instance, laws governing health and safety, employment, and discrimination.

• Environmental: This refers to businesses (agricultural, tourism, insurance, biopharmaceuticals, energy, and so on) that are affected by environmental regulations and climate change. But, more organisations are becoming involved in sustainable practices such as Corporate Social Responsibility (CSR) due to pressure from environmentally conscious groups.

We will explain more about these models in future articles. Keep an eye out for it!

Source: fireflies.ai